Maker Fee

A maker fee is a charge applied to traders who place limit orders that do not execute immediately against the existing order book. By providing liquidity to the market, makers allow other participants to trade against them, thereby tightening the bid-ask spread and increasing market depth.

Exchanges often incentivize makers by charging lower fees or sometimes even providing rebates, as these participants are essential for healthy price discovery. In the context of options trading, the maker fee is critical for market makers who manage delta-neutral portfolios and rely on capturing the spread.

If a maker order is filled, the fee is calculated based on the notional value of the trade. Understanding the distinction between maker and taker fees is essential for optimizing trading costs in high-volume environments.

It is a key mechanism used by exchanges to manage order flow and encourage passive liquidity.